Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information

Segment Information

10.  Segment Information

The following tables present certain information with respect to the Company’s segments. Intersegment revenues between the Company’s segments were not material in any of the periods presented below.  The income (loss) from operations by segment presented below does not include allocations for corporate overhead costs or expenses associated with utilizing property subject to the Master Lease.

Three months ended June 30, 2015	East/Midwest		West		Southern Plains		Other (1)			Total
	(Restated)		(Restated)		(Restated)		(Restated)			(Restated)
Income (loss) from operations	$	101,013	$	15,728	$	57,044	$	(50,424	)	$	123,361
Charge for stock compensation	—		—		—		2,337			2,337
Depreciation and amortization	24,527		2,086		10,697		24,965			62,275
Plainridge contingent purchase price	356									356
(Gain) loss on disposal of assets	78		144		19		130			371
Income from unconsolidated affiliates	—		—		4,401		(247		)	4,154
Non-operating items for Kansas JV	—		—		2,528		—			2,528
Adjusted EBITDA	$	125,974	$	17,958	$	74,689	$	(23,239	)	$	195,382

Three months ended June 30, 2014	East/Midwest			West		Southern Plains		Other (1)			Total
	(Restated)			(Restated)		(Restated)		(Restated)			(Restated)
Income (loss) from operations	$	81,868		$	15,308	$	49,836	$	(41,545	)	$	105,467
Charge for stock compensation	—			—		—		2,517			2,517
Impairment Losses	4,560			—		—		—			4,560
Depreciation and amortization	25,911			1,692		17,573		24,698			69,874
(Gain) loss on disposal of assets	(30		)	—		39		(6		)	3
Income from unconsolidated affiliates	—			—		2,621		(1,148		)	1,473
Non-operating items for Kansas JV	—			—		2,939		—			2,939
Adjusted EBITDA	$	112,309		$	17,000	$	73,008	$	(15,484	)	$	186,833

Six months ended June 30, 2015	East/Midwest			West		Southern Plains		Other (1)			Total
	(Restated)			(Restated)		(Restated)		(Restated)			(Restated)
Income (loss) from operations	$	191,878		$	31,254	$	112,428	$	(100,510	)	$	235,050
Charge for stock compensation	—			—		—		4,421			4,421
Depreciation and amortization	49,910			4,259		21,480		49,995			125,644
Plainridge contingent purchase price	707			—		—		—			707
(Gain) loss on disposal of assets	(44		)	324		120		125			525
Income from unconsolidated affiliates	—			—		8,189		(53		)	8,136
Non-operating items for Kansas JV	—			—		5,278		—			5,278
Adjusted EBITDA	$	242,451		$	35,837	$	147,495	$	(46,022	)	$	379,761

Six months ended June 30, 2014	East/Midwest			West		Southern Plains		Other (1)			Total
	(Restated)			(Restated)		(Restated)		(Restated)			(Restated)
Income (loss) from operations	$	159,591		$	32,250	$	101,174	$	(85,034	)	$	207,981
Charge for stock compensation	—			—		—		5,096			5,096
Impairment Losses	4,560			—		—		—			4,560
Depreciation and amortization	52,734			3,241		34,824		49,260			140,059
(Gain) loss on disposal of assets	(117		)	65		17		(12		)	(47		)
Income from unconsolidated affiliates	—			—		5,074		(1,118		)	3,956
Non-operating items for Kansas JV	—			—		5,860		—			5,860
Adjusted EBITDA	$	216,768		$	35,556	$	146,949	$	(31,808	)	$	367,465

	East/Midwest		West		Southern Plains		Other (1)		Total
	(Restated)		(Restated)		(Restated)		(Restated)		(Restated)
	(in thousands)
Three months ended June 30, 2015
Net revenues	$	417,756	$	63,664	$	213,689	$	5,847	$	700,956
Capital expenditures	60,150		2,363		8,003		1,184		71,700
Three months ended June 30, 2014
Net revenues	$	361,357	$	59,033	$	224,726	$	7,030	$	652,146
Capital expenditures	16,988		9,617		13,990		2,678		43,273
Six months ended June 30, 2015
Net revenues	$	804,300	$	126,250	$	423,958	$	10,586	$	1,365,094
Capital expenditures	98,724		5,214		14,451		2,100		120,489
Six months ended June 30, 2014
Net revenues	$	710,805	$	119,953	$	448,483	$	13,985	$	1,293,226
Capital expenditures	27,098		16,047		33,333		3,836		80,314
Balance sheet at June 30, 2015
Total assets	1,113,643		331,923		1,049,252		2,250,058		4,744,876
Investment in and advances to unconsolidated affiliates	91		—		109,658		63,977		173,726
Goodwill and other intangible assets, net	427,449		143,386		716,206		4,078		1,291,119
Balance sheet at December 31, 2014
Total assets	1,007,162		287,551		1,076,290		2,293,891		4,664,894
Investment in and advances to unconsolidated affiliates	94		—		115,469		63,988		179,551
Goodwill and other intangible assets, net	427,335		143,242		718,982		4,078		1,293,637

(1) Includes depreciation expense associated with the real property assets under the Master Lease with GLPI.  In addition, total assets include these assets.  The interest expense associated with the financing obligation is reflected in the other category.  Net revenues and income (loss) from unconsolidated affiliates relate to the Company’s stand-alone racing operations, namely Rosecroft Raceway, Sanford Orlando Kennel Club and the Company’s Texas and New Jersey joint ventures which do not have gaming operations.

Management uses adjusted EBITDA as the primary measure of the operating performance of its segments, including the evaluation of operating personnel and is especially relevant in evaluating large, long lived casino projects because they provide a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. The Company defines adjusted EBITDA as earnings before interest, taxes, stock compensation, debt extinguishment charges, impairment charges, insurance recoveries and deductible charges, depreciation and amortization, changes in the estimated fair value of contingent purchase price to the previous owners of Plainridge Racecourse, gain or loss on disposal of assets, and other income or expenses. Adjusted EBITDA is also inclusive of results from discontinued operations, income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our joint venture in Kansas Entertainment. Adjusted EBITDA should not be construed as alternatives to operating income, as indicators of the Company’s operating performance, as alternatives to cash flows from operating activities, as measures of liquidity, or as any other measures of performance determined in accordance with GAAP. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in adjusted EBITDA.